Forex Trading The Martingale Way

trading etfs “The market is bust for now, that does not mean that there is no chance that this will improve in the future,” the chairman of E.ON Global Commodities Christopher Delbrueck said Tuesday at the sidelines of an energy trading conference in Berlin. According to Delbrueck, the German power market at the moment is failing to deliver on its key targets to deliver clean, affordable and reliable electricity. Trading opportunities in power are also more limited due to the flatness of the curve with volumes continuing to shift from longer to shorter maturities, Delbrueck said. Article continues below… 8th Annual Central and Eastern European Power January 22-23, 2014: Warsaw, Poland Platts 8th Annual Central and Eastern European Power conference provides a critical platform for the region’s leading power companies, power plant developers, regulators, traders and solution providers to discuss what needs to be done to create sustainable power generation in the Central and Eastern European region. However, with regards to its gas wholesale trading business, the head of E.ON’s trading unit was more optimistic amid strong annual growth for the German gas hubs Gaspool and NCG.
Source: http://www.platts.com/latest-news/electric-power/berlin/eon-trading-chief-says-german-power-market-bust-26497941

A spokesman for the association, Aelred Connelly, said Nov. 22 that the group is reviewing its own benchmarks to see whether they conform to guidelines set by the International Organization of Securities Commissions in July. Those include making prices based on observable deals where possible. The LBMA oversees gold forward offered rates, which reflect bullion borrowing costs for different durations and are used in loan agreements.
Source: http://www.bloomberg.com/news/2013-11-26/gold-fix-drawing-scrutiny-amid-knowledge-tied-to-eruption.html

However, let’s consider what happens when you hit a losing streak: Your Bet $ (3) ZERO Once again, you have $10 to wager, with a starting bet of $1. In this scenario, you immediately lose on the first bet and bring your balance down to $9. You double your bet on the next wager, lose again and end up with $7. On the third bet, your wager is up to $4 and your losing streak continues, bringing you down to $3. You do not have enough money to double down, and the best you can do is bet it all.
Source: http://finance.yahoo.com/news/forex-trading-martingale-way-180000804.html

An SEC requirement that banks give some specifics on those businesses resulted in disclosures that firms such as Goldman Sachs, which gets more than half its revenue from trading, said lack meaningful context. “If you’re trying to figure out the profitability of different lines of business, I don’t know how you effectively do that,” said Edward Siedle, a former SEC attorney and president of Ocean Ridge, Florida-based Benchmark Financial Services Inc. “The commission needs to be careful not to require a disclosure scheme that is just as likely to be misleading as it is to be revealing.” John Nester, an SEC spokesman, and Michael DuVally at New York-based Goldman Sachs declined to comment about whether the disclosures could change. Goldman Sachs tells investors in quarterly earnings reports how much revenue it makes from trading “fixed income, currency and commodities” without giving specifics about the components. That line produced $6.93 billion in the first nine months of this year, 27 percent of the firm’s total revenue. The closest thing that investors get to a breakdown is in 10-Q filings that Goldman Sachs makes public a few weeks after reporting results.
Source: http://economictimes.indiatimes.com/news/international-business/goldman-currency-trading-shows-disclosure-gap/articleshow/26435040.cms?prtpage=1

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Government Sells £900 Million In Student Loans To Debt Collection Company

Nelson may be right. She pays about $145 a month, but her loans are now about $66,000. With a 6 percent interest rate, even if she more than doubles her payment to $331, it will take her 98 years to pay it off, and she’ll pay more than $300,000 in interest. If she could boost that payment to $700 a month, she could get it paid off in the next 10 years, and be finished by retirement. Darren Marshall should be thinking about his retirement.
Source: http://www.myfoxdfw.com/story/24067269/college-graduates-struggle-with-student-loan-spiral

They come as concern continues to mount about the level of indebtedness by college students and graduates. Estimates show more than $1.2 trillion in student loan debt across the nation, more than the nation owes on credit cards. Congress is expected to take a look at the issue in the coming months. In September, the Senate Health, Education, Labor and Pension Committee launched a series of hearings to look at critical issues in higher education ahead of reauthorization of the Higher Education Act, which is set to expire at the end of this year. Among the issues being looked at are the student loans programs, according to Allison Preiss, press secretary for Democratic Sen. Tom Harkin of Iowa, who heads the committee.
Source: http://www.wltx.com/rss/article/256951/142/Govt-Shows-413-Billion-in-Student-Loan-Profits

In 2012, approximately 900,000 Swedish students received help from their government totaling close to 22 billion krona , or nearly $3.5 billion, to cover fees and living expenses, according to annual reports. Roughly two-thirds of those funds were loans. [See photos of the top universities around the world .] In Japan, an estimated $5 billion in student loans were past due in 2011, the Japan Daily Press reported . Average tuition at the country’s public universities is roughly $5,400, according to Japan’s Ministry of Education, Culture, Sports, Science and Technology. The unpaid debt prompted a crackdown on poorly performing direct loans forgiveness students.
Source: http://www.huffingtonpost.com/2013/11/20/student-loan-debt-around-the-world_n_4299782.html

The head of the National Union of Students (NUS) has slammed the move as “ridiculous” and “extremely concerning”, while the government insists the sale represents “good value for money”. Selling Off the Loan Book Would Be the Government’s Most Outrageous Attack on Students, So Why Aren’t the NUS More Concerned? A company called Erudio Student Loans was named as the successful bidder on Monday, and now owns the remaining 17% of mortgage style student loans taken out by those who began courses between the eight year period. Universities and Science Minister David Willetts said the price paid exceeds the estimated value of the remaining student loans, and added the private sector is “best placed” to collect the remaining debts. The sale of the remaining mortgage style student loan book represents good value for money, helping to reduce public sector net debt by 160m,” he said. “The private sector is well placed to maximise returns from the book which has a deteriorating value.
Source: http://www.huffingtonpost.co.uk/2013/11/25/student-loan-book-sold-160m-government_n_4336301.html?ir=UK+Politics

The loans, which were taken out by students who began courses between 1990 and 1998, have been sold to a debt management consortium for 160 million. Universities Minister David Willetts said the private sector was best placed to collect the outstanding debt, allowing the Student Loans Company (SLC) to concentrate on administering newer loans. Of the 250,000 loans sold, around 46% are earning below the repayment threshold, 14% of borrowers are still repaying and 40% are not repaying their loans in accordance with their terms. The project to find a buyer for the remaining mortgage-style loans was launched earlier this year, when Mr Willetts said the plan would “maximise the value of one of the Government’s assets”. The mortgage-style loans have a face value of around 890 million but the market value is significantly lower. The SLC will continue to manage the loan book until it is transferred to Erudio Student Loans in a few months’ time.
Source: http://home.bt.com/news/uknews/student-loans-sold-to-debt-company-11363852659506

Typically debt purchase firms pay just a few pence in the pound for these dodgy debts and then carpet bomb potential debtors. In the past that has led to many complaints about innocent people receiving threatening letters, phone calls or even visits simply because they have the same number as a debtor, or used to live at the same address as them. As the debt purchase firms own the debts, they only make money if they can collect on them, so some tend use whatever methods at their disposal to do so. However the industry has come under the scrutiny of the Office of Fair Trading and responsibility for its regulation will in April pass to the Financial Conduct Authority. Most debt purchase firms took an enormous hit in the credit crunch when they were left saddled with too much uncollectable debt.
Source: http://www.independent.co.uk/student/news/government-sells-900-million-in-student-loans-to-debt-collection-company-8961790.html

Investment bankers from Barclays and Rothschild were appointed by the Department for Business, Innovation and Skills (BIS) last month to oversee the sale, which more than 15,000 people have signed an online petition to oppose. Danny Alexander, the chief secretary to the Treasury, said during the summer that the Government hoped to raise 10bn from the sale of corporate and financial assets such as the student loan book by 2020. David Willetts said the sale would help balance the nation’s books Speaking in March, when the mortgage-style student loan auction was initiated, David Willetts, the universities and science minister, said: “Selling the remaining mortgage-style student loans will allow us to reduce public debt and maximise the value of one of the Government’s assets. “The private sector’s expertise makes it well-placed to collect this debt and the sale will also help the Student Loans Company (SLC) to concentrate on providing loans to current students.” The low recovery rate on the 1990s loans means the sale price is likely to be only in the tens of millions of pounds, reflecting the distressed nature of the debts, people close to the situation said on Sunday. The deal will come at a sensitive time, just weeks after Royal Mail was floated with a valuation of 3.3bn. On Wednesday, Royal Mail will present its maiden results as a listed company, while Vince Cable, the Business Secretary, will make a further appearance before the BIS Select Committee amid allegations that the postal operator was sold too cheaply.
Source: http://news.sky.com/story/1173070/student-loans-ministers-to-unveil-900m-sale

Are student loans the next big bust?

The loans, which were taken out between 1990 and 1998, are likely to be sold for significantly lower than their market rate. Universities Minister David Willetts announced plans to sell the loans in March, saying the “mortgage-style” student loans will “allow us to reduce public debt and maximise the value of one of the government’s assets. A fresher at Manchester university browses books at a secondhand stall. Student loans from 1990 to 1998 will be sold to a private debt collection agency on Monday “The private sector’s expertise makes it well placed to collect this debt and the sale will also help the Student Loans Company to concentrate on providing loans to current students.” Many whose loans will be included in the sell-off took to Twitter on Sunday evening to voice concern about the plans to sell the loans to a debt collection agency. I wish there was a way I could stop them selling off the student loan book, it’s lunacy.
Source: http://www.huffingtonpost.co.uk/2013/11/24/student-loans-sell-off_n_4333887.html?ir=UK+Universities+%26+Education

Louis. Chopra draws lots of parallels between the mortgage bubble and student loans today. In both cases, those making the loans and pocketing the money have little interest in seeing it repaid. Posh U arranges a federal student loan and gets the money, but its not on the hook of Joe Student goes broke. Hence the bath of advertising from for-profit colleges on daytime TV, hoping to reel in the idle.
Source: http://www.stltoday.com/business/columns/jim-gallagher/are-student-loans-the-next-big-bust/article_b371a567-6336-51ea-913f-47242585a289.html

Etf Preview: Etfs Weaker, Futures Flat To Lower As Fisher Comments Weigh

best performing etfs (CIMT) was up 7.31% after reporting stronger-than-expected EPS and record revenues for Q3 2013. CIMT said non-GAAP diluted EPS was $0.11, up from $0.07 in the same period last year, beating the Thomson Reuters consensus of $0.06. Revenues rose year over year to a record $10.3 million from $9.5 million recorded in Q3 2012. Energy – Dow Jones U.S. Energy Fund (IYE) and Energy Select Sector SPDR (XLE) were flat, after seeing some gains in Monday’s after hours. In sector news, Northern Tier Energy (NTI) was down 0.04% after reporting Q3 revenue of $1.44 billion, up from $1.26 billion last year.
Source: http://www.nasdaq.com/article/etf-preview-etfs-weaker-futures-flat-to-lower-as-fisher-comments-weigh-cm299802

ETF Deathwatch For November 2013: 1 In 5 Don’t Survive

Relative momentum is gauged by the 12 month total returns of each ETF. In order to have an “Invested” signal, the ETF with the highest relative strength must also have 12-month total returns greater than the 12-month total returns of SHY. This is the absolute momentum filter which is detailed in depth by Antonacci, and has historically helped increase risk-adjusted returns. An “average” return signal for each ETF is also available on the spreadsheet. The concept is the same as the 12-month relative momentum. However, the “average” return signal uses the average of the past 3, 6, and 12 (“3/6/12) month total returns for each ETF.
Source: http://seekingalpha.com/article/1830782-dual-etf-momentum-portfolio-november-update-and-backtests

Spain ETF Presents a Buying Opportunity

Like Japan, South Korea is highly dependent on exports, particularly automobiles and electronics. And like Japan, a strong currency can be problematic for South Korean stocks. With room for the Bank of Korea to defend its exporters by lowering rates to weaken the won, this years lesson in Japan ETFs is worth remembering. That being the currency hedged WisdomTree Japan Hedged Equity Fund ( DXJ ) is up 29.2% while the db X-trackers MSCI Japan Hedged Equity Fund ( DBJP ) has gained 29%.
Source: http://finance.yahoo.com/news/south-korea-etf-showdown-110005776.html

Dual ETF Momentum Portfolio: November Update And Backtests

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Source: http://www.ft.com/cms/s/0/cad06ee6-4ae9-11e3-ac3d-00144feabdc0.html

South Korea ETF Showdown

22, a total that represents about 9% of the funds current assets under management tally. [Month of the PIIGS] EWP recent, modest retrenchment could be the dip some investors have been waiting for to put on a tactical, single-country trade to complement a broader Europe ETF such as the Vanguard FTSE Europe ETF ( VGK ) , which allocates just 4.8% of its portfolio to Spanish stocks. Spanish stocks have been drifting downward for the past three weeks. This is a normal, healthy correction, and should be expected. But its also a great opportunity to accumulate new shares of your favorite Spanish stocks, writes Charles Sizemore of the Sizemore Investment Letter.
Source: http://finance.yahoo.com/news/spain-etf-presents-buying-opportunity-123057548.html

ETF demand sends platinum to big deficit

This is the lowest quantity since March 2012 and represents a decline of more than 21% from the September 2012 peak of 403. The number of lifetime closures now totals 369, or 19.5% of the 1,894 total product launches. The 15 closures occurring in October were all on ETF Deathwatch, so the list has been doing its job of warning investors. IQ Canada Small Cap ( CNDA ) is a surprising addition this month. It debuted in March 2010, becoming the first Canadian small cap ETF . However, it never caught on with investors, despite the fact that most U.S.
Source: http://seekingalpha.com/article/1830852-etf-deathwatch-for-november-2013-1-in-5-dont-survive

How To Pay Your Student Loans

Obama student loan relief 4. Have a balanced diet. Brady recommends paying off the debt as soon as possible, but not using a Atkins debt payoff system. Have some carbs on your plate, which is like investing in your 401(k). Have some protein, which is paying off your debt. And then have some fat, which tastes really good, and have a little fun, Brady said.
Source: http://www.deseretnews.com/article/865590273/Experts-offer-advice-about-paying-off-those-dreaded-student-loans.html?pg=all

By paying more than the minimum on your student loans every month or whenever you can, you can pay off your loans sooner and also lower the total amount of interest you pay over the life of the loan. Make Loan Payments When Due. Making your loan payments on time can help you build and maintain a good credit rating — and avoid the extra expense of late fees. When you incur a $25 late fee on a payment of $125, that is a 20 percent interest cost on that one payment and over the course of a few years, this really adds up. Save time and money by enrolling in automatic bill payment. Borrowers who sign up for automatic debit may qualify for a .25 percentage point interest rate reduction while enrolled to make scheduled monthly payments.
Source: http://www.cbsnews.com/8301-505144_162-57611290/how-to-pay-your-student-loans/

Perkins loans are also excluded. Service members can get around this loophole by consolidating these loans into a new direct loan. Some borrowers miss out on this benefit because they put their loans on a military deferral, which halts payments while they are on active duty. Instead of stopping payments, troops should explore options to lower the amount due each month, such as income-based, income-contingent and pay-as-you-earn repayment plans. Each option bases monthly payments on annual earnings and family size . The reduced amount still counts as a full payment for public service loan forgiveness, even if the total amount due each month is zero dollars.
Source: http://www.huffingtonpost.com/2013/11/11/student-loan-relief-service-members_n_4254872.html

“This provision takes a bad situation and makes it worseforcing people in financial trouble to divide their meager resources so that they can’t stay current on their student loans,” said Sen. Elizabeth Warren (D., Mass.), a consumer-protection advocate. “This is fundamentally the wrong approach.” It isn’t clear how many of the roughly 1.2 million Chapter 13 bankruptcy cases filed overall by individuals in 2010, 2011 and 2012 included student loans. But lawyers across the country say their bankruptcy clients have ever-larger education debts. Some bankruptcy experts say the problem shows the U.S. Bankruptcy Code is ill-equipped to handle student-loan debt, which, at about $1 trillion, has outgrown credit cards as the largest source of consumer debt, excluding mortgages.
Source: http://online.wsj.com/news/articles/SB10001424052702303983904579095262035350296

Has The Stock Market Become Dysfunctional?

Stock Market Today: Will Twitter Soar?

The stock market’s bull run http://www.todayhotstocks.com isn’t getting the respect it deserves, JPMorgan’s chief U.S. equity strategist, Tom Lee, said Monday. “This is a bull market people don’t like, don’t respect,” he said. “I think individuals, especially high-net-worth individuals, have huge cash positions. I just think that right now stocks don’t have any respect. I think there’s a feeling that the best way to make money is through fixed income or real return instruments.
Source: http://www.cnbc.com/id/101168070

“Our view remains that national home prices will continue to rise,” says Peter Newland of Barclays. “That said, this report may hint at the beginning of an easing in the pace of price gains.” As for third-quarter corporate earnings, they’ve been respectablebut nothing to write home about. Profit growth remains slow and steady. Third-quarter profit growth among S&P 500 stocks is expected to be about 4.5%, and companies are beating a low bar set by analysts, investors say. Still, some analysts say the overall market is reasonably priced, no matter how expensive a few sexy stocks appear. The S&P 500 trades at a reasonable multiple of 15 times expected earnings over the next 12 months.
Source: http://online.wsj.com/news/articles/SB10001424052702303618904579171502758867222

The stock climbed as high as $50.09 before closing at $44.90, up 73%. That values the company at more than $31 billion, which compares with Facebook’s market capitalization of $120 billion and LinkedIn’s $26 billion. INVESTORS: How you can get Twitter IPO shares (But should you?) The gains highlight how euphoria is returning to the tech sector, fueled by optimism about the potential for social media to grab a big share of the booming online advertising business. Facebook and LinkedIn shares are up at least 80% so far in 2013. Tech’s biggest stock pops Twitter’s 73% opening day pop doesn’t come close to the 10 largest first-day percentage jumps, all of which came during the dot-com bubble: Sponsored by Percent of stock increase Sycamore Net.CacheflowAkamai TechMarketWatch.comCobalt NetworksFree MarketsWebmethodsFoundry Net.Globe.comVa Linux “We’re entering a pretty extended period of optimism,” said Rick Summer, an equity analyst at Morningstar. “There is a lot of downside risk at these levels,” he added, referring to Twitter’s opening price.
Source: http://www.usatoday.com/story/tech/2013/11/07/twitter-stock-market-debut/3459711/

Sam Stovall, chief equity strategist at S&P Capital IQ told the LA Times that he didn’t think the market’s advance was in danger of being derailed but said “said investors are still a little bit nervous. USA Today blunted any bubble talk Wednesday by noting that the rising stock prices are based largely on company earnings and in anticipation of tomorrow’s Twitter IPO. Marketwatch also cited the positive earnings. In the absence of bad news, the path of least resistance for equities is up, Terry Sandven, chief equity strategist at U.S. Bank Wealth Management told Marketwatch. In a story headlined “Why the Dow Jones Had a Record Close Today.” Slate.com writer Sean Vitka penned, “The Dow Jones Industrial Average closed at a record today at 15,747. Theres really no good reason for the high, except that investors are expecting continued quantitative easing.
Source: http://www.examiner.com/article/dow-record-stock-market-soars-but-are-we-headed-for-a-bubble

Days of Stock Market Irrationality Numbered

While individual actors are rational (it’s imperative for companies to be lean, there is little reason to invest in new capacity when the demand for its products is not there, excess cash should paid back to shareholders, etc.), the end result clearly leaves a lot to be desired. In a follow up article, we’ll investigate what can be done to improve this situation. Source: Has The Stock Market Become Dysfunctional? Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha).
Source: http://seekingalpha.com/article/1806472-has-the-stock-market-become-dysfunctional

Best Stock Market Since 1997 Seen With S&P 500 Momentum

But as this was all happening, we saw the formations of very troubling trends in the fundamentals that drive key stock indices higher. Companies on key stock indices started to show corporate earnings that were nothing but an illusion. They fiddled with their corporate earnings via massive stock buyback programs and cost-cutting to make them look better. And as we now near the end of 2013, companies in key stock indices continue to do more of what they have been doing for a while: using financial engineering to make their corporate earnings look better. But the real gauge of how companies are doingif you cant trust their earningslies in their sales.
Source: http://smallbusiness.yahoo.com/advisor/days-stock-market-irrationality-numbered-172511846.html

gross domestic product is projected to expand 1.6 percent, almost half the rate of 2012, data and estimates compiled by Bloomberg show. Economists this month cut their growth forecasts for the fourth quarter to 2 percent from an earlier projection of 2.5 percent. GDP hasnt expanded faster than 3 percent a year since 2005 and wont achieve that pace until 2015, they say. Embedded Gains I just dont see the market having a reason as a whole to really go up a lot, David Pearl, co-chief investment officer at Epoch Investment Partners Inc. in New York , said in an Oct. 31 phone interview.
Source: http://www.bloomberg.com/news/2013-11-04/best-stock-market-since-1997-seen-with-s-p-500-year-end-momentum.html

Index futures as of 7:35 a.m. EST suggest a strong day on the stock market, with the Dow Jones Industrial Average (DJINDICES: ^DJI ) set to gain 83 points at the opening bell. That should keep markets hovering near their all-time highs, thanks in part to an earnings season that has seen most companies beat profit expectations. The Federal Reserve has also played a role in the Dow’s stellar 20% jump so far this year: The central bank has stuck with its stimulus program amid steady but unimpressive economic growth. With that bigger picture in mind, here are a few individual stock stories to watch for in today’s market.
Source: http://www.fool.com/investing/general/2013/11/07/stock-market-today-will-twitter-soar.aspx